Are you facing tough financial decisions?
Trying to decide if you should declare bankruptcy to avoid a foreclosure or whether you should
wait for the foreclosure to happen and then declare bankruptcy? This can be a very scary
and confusing time, but I want to share some information that may give you an insight on
what path you should take. Hi, I’m Jim Keaveney of Keaveney Legal Group.
We are a New Jersey and Pennsylvania based law firm that focuses on foreclosure defense
and bankruptcy. We regularly counsel our clients on the advantages and disadvantages of both
bankruptcy and the foreclosure process, and help them find ways to maximize their opportunities
through well-thought-out legal strategy. Join me as we discuss this topic today. Topic: When it comes to declaring bankruptcy before
foreclosure, whether or not you should do it really depends on your goals. If you want
to delay the foreclosure for a while because you believe you have no other options for
staying in the home, then a bankruptcy might be a good way to do that. Similarly, if you
want to avoid the possibility of a deficiency judgment against you after the foreclosure,
a bankruptcy could wipe out that obligation. If, on the other hand, you would prefer to
keep the property but cannot afford the current monthly payments, you may want to explore
other options. For example, you may be able to obtain a loan modification without going
through bankruptcy or foreclosure. This may dramatically reduce your monthly payments
and allow you to keep your home and your investment. Of course, you might be able to do that after
a bankruptcy, as well, but you would usually have to reaffirm the debt in your bankruptcy.
Reaffirmation means that you agree to pay all or a portion of the debt that might otherwise
have been discharged in bankruptcy. As a result, it might be wise to pursue a loan modification
before filing for bankruptcy since the modification may remove the circumstances putting you into
bankruptcy and it can keep you from reaffirming a debt that otherwise might have been discharged
simply so you can keep your home. That way, if you still need to pull the safety valve
of a bankruptcy, you can safely count on the mortgage debt being discharged, as well.
Another important consideration is upkeep of the property. Many people believe that
if they declare bankruptcy and move out of the house, their obligation is over. However,
in reality the owner remains obligated to maintain the property until title transfers
to someone else. As a result, you could be held liable for code violations, homeowners
association liens and penalties, and other upkeep expenses related to the property. Therefore,
you must carefully consider what you will do with the property before deciding whether
bankruptcy is right for you. Closing:
Every case is different, so you will need to speak to an experienced attorney to get
the best advice on your particular circumstances. Here at Keaveney Legal Group, we are dedicated
to helping those facing foreclosure and bankruptcy. We understand the pros and cons of both systems,
and will be happy to assist you in determining the best course of action for your particular
situation. Feel free to give us a call at 1-800-219-0939 or email me at [email protected]
I’m Jim Keaveney; thanks for watching!